Correlation Between Kafein Yazilim and ICBC Turkey
Can any of the company-specific risk be diversified away by investing in both Kafein Yazilim and ICBC Turkey at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Kafein Yazilim and ICBC Turkey into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kafein Yazilim and ICBC Turkey Bank, you can compare the effects of market volatilities on Kafein Yazilim and ICBC Turkey and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Kafein Yazilim with a short position of ICBC Turkey. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kafein Yazilim and ICBC Turkey.
Diversification Opportunities for Kafein Yazilim and ICBC Turkey
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kafein and ICBC is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Kafein Yazilim and ICBC Turkey Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICBC Turkey Bank and Kafein Yazilim is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Kafein Yazilim are associated (or correlated) with ICBC Turkey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICBC Turkey Bank has no effect on the direction of Kafein Yazilim i.e., Kafein Yazilim and ICBC Turkey go up and down completely randomly.
Pair Corralation between Kafein Yazilim and ICBC Turkey
Assuming the 90 days trading horizon Kafein Yazilim is expected to under-perform the ICBC Turkey. In addition to that, Kafein Yazilim is 1.12 times more volatile than ICBC Turkey Bank. It trades about -0.35 of its total potential returns per unit of risk. ICBC Turkey Bank is currently generating about 0.16 per unit of volatility. If you would invest 1,380 in ICBC Turkey Bank on September 12, 2024 and sell it today you would earn a total of 126.00 from holding ICBC Turkey Bank or generate 9.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kafein Yazilim vs. ICBC Turkey Bank
Performance |
| Timeline |
| Kafein Yazilim |
| ICBC Turkey Bank |
Kafein Yazilim and ICBC Turkey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kafein Yazilim and ICBC Turkey
The main advantage of trading using opposite Kafein Yazilim and ICBC Turkey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kafein Yazilim position performs unexpectedly, ICBC Turkey can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ICBC Turkey will offset losses from the drop in ICBC Turkey's long position.| Kafein Yazilim vs. Hitit Bilgisayar Hizmetleri | Kafein Yazilim vs. Dogus Gayrimenkul Yatirim | Kafein Yazilim vs. IZDEMIR Enerji Elektrik | Kafein Yazilim vs. Logo Yazilim Sanayi |
| ICBC Turkey vs. Pamel Yenilenebilir Elektrik | ICBC Turkey vs. Bosch Fren Sistemleri | ICBC Turkey vs. Marka Yatirim Holding | ICBC Turkey vs. Dogus Gayrimenkul Yatirim |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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